Iran has started work on its €2.4 billion ($2.73 billion) high-speed railway network, which will extend about 400 km from capital Tehran to the city of Isfahan, said a report.

The railway line is being built by China Railway Engineering Corporation (CREC) in co-operation with Iran’s Khatam Al Anbia Construction. It is likely to be completed over the next four years, reported the Tehran Times.

The trains running on this high-speed railway line can reach speeds of about 350 km per hour, it added.

President Hassan Rouhani officially launched the project during a visit to the city of Qom, which is located between Tehran and Isfahan.
 
The project will save an estimated 550 billion rials (about $20 million) annually in fuel consumption, said the report.
 
Iran’s Bank of Industry and Mine will provide $1.8 billion of the total finance through China Export and Credit Insurance Corporation (Sinosure) for the project.